Disposable Income is Falling at 2008 Rates

[iamwhatiseem]

Hey Hey...now guys...The Dow is doing great, large corporations are doing well, the top 7% of wage earners have seen their earnings grow by 28%...what...just because the remaining 93% of the population has, on average, seen a 5% decline in their wages you don't like it?
C'mon...Wall Street is still getting Fed money and doing extremely well...what more do you want?

 

[OnePercenter]

Who creates jobs and determines wages?

The creation of jobs is dictated on demand of middle class spenders.

Determination of wages is by employers attempting to pay the least possible to maximize profits. Which of course is more important than anything.

 

[OnePercenter]

Obama's biggest failure: 8/22/2013. His plan to destroy America economically and militarily, is working.

Preached to you by a one percenter with something to sell.

 

[OnePercenter]

Raise minimum wage to $23.50/hr.

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

 

[The Rabbi]

Raise minimum wage to $23.50/hr.

Heck why stop there? What's wrong with $50?

If wages would have kept up with costs minimum wage would be $23.50/hr.

If wages had kept up with the price of gold it would $50/hr. If it had kept up with the Dow Jones Average it would $79/hr. If it had kept up with the CPI it would be..you get the idea.
If 23.50 is good then 50 is better. Right?

 

[The Rabbi]

Raise minimum wage to $23.50/hr.

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

They would receive a pay increase. Minimum wage is the base for ALL wages.

You didnt do well in Econ 101 did you? Actually you probably never took Econ 101. Or ran a business. Or hired anyone. Amiright?

 

[OnePercenter]

My field sometimes has that situation where the employee makes more than their supervisor.

Many software devs who have been in the business long enough make pretty good buck well into six figures, yet they can end up working for a middle manager type who makes in the 70s or 80s.

Sure they can. Commission jobs, jobs based on salaries and bonuses, and of course the 'wacked out' IT industry that recruits to make the previous two years of work obsolete.

 

[The Rabbi]

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

Never run a small business, I see.
Many times my employee got paid much more than I took. Frequently I took nothing.

 

[OnePercenter]

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

Never run a small business, I see.
Many times my employee got paid much more than I took. Frequently I took nothing.

I started two companies from inception and sold 20 years later for $50M.

Today I'm an Angel Investor in two IT delivery companies that have hit the $20M revenue mark, and in the next five years will hit the $50M mark.

'Frequently I took nothing'. Ok. No profit? No house payment? No car payment? No vacation home payment?

I spent a year as a volunteer mentor for the SBA and have come up with numerous basis facts for small business owners:

1. Almost all have no idea what their business is worth.

2. Almost all have no idea how much they're salary should be.

3. Almost all believe that hiring family is a good idea which is the worst idea of all.

4. Almost all had no idea how to negotiate with suppliers.

5. Almost all were severely underfunded.

6. Almost all had no idea how to eliminate their competition.

7. Almost all had no idea how to advertise.

I can guarantee you fall into one or more of the above.

 

[AmazonTania]

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

It's very common for an employer to make less than his employees. Revenue - Expenses = Profit.

Profits are earned after all the expenses are paid. This doesn't guarantee that a profit will be made at all. While it may be true that there is something wrong if you make less money than your employees, it's usually a sign that you have hired too soon.

 

[OnePercenter]

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

It's very common for an employer to make less than his employees. Revenue - Expenses = Profit.

Profits are earned after all the expenses are paid. This doesn't guarantee that a profit will be made at all. While it may be true that there is something wrong if you make less money than your employees, it's usually a sign that you have hired too soon.

Then why would you want to be an employer?

 

[AmazonTania]

You're asking me? 75 % of all start ups end up failing. I don't know why entrepreneurs decide to hire so soon. It's probably because they believe their business is expanding rapidly, or probably were just ill prepared for the addition cost of taking on employees.

 

[oldfart]

A raise in minimum wage would affect 100% of the labor force directly.

I think the data disagree with you. Tell me how an increase in the minimum wage increases compensation of commission salespeople.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

I did plenty of things wrong. Most of the businesses had 3--10 FTE employees. At one point I had about 15 at one time, in the same industry. A couple of times everyone in the industry took a bath. I had three that were a bust and eventually I just shut them down. Overall, I made money, but in five years I had net loses and three of them took no draw.

This is pretty typical of professional practices and mom & pop retail. Most businesses start on a shoestring, have a high failure rate, and are initially financed by savings, family, and friends; not venture capital or banks. Once they make it and are worth something, financing becomes available and you can float a business plan to lenders that lets you take some bucks out. My average venture had a startup cost of say $25k.

 

[OnePercenter]

You're asking me? 75 % of all start ups end up failing. I don't know why entrepreneurs decide to hire so soon. It's probably because they believe their business is expanding rapidly, or probably were just ill prepared for the addition cost of taking on employees.

You seem to be a one string guitar with this employee rant. Business owners actually go off the deep end and buy a 'Bentley', which I use as a figurative statement for being STUPID in spending.

Seventy-five percent of start-ups fail because they're underfunded.

There are only two things that you need to open and succeed in business;

1. Five years total capital.

2. Know who to hire.

Number 2 is much more difficult than number one, but you can hire it out.

 

[OnePercenter]

A raise in minimum wage would affect 100% of the labor force directly.

I think the data disagree with you. Tell me how an increase in the minimum wage increases compensation of commission salespeople.

A two earner household more than doubles their income and you ask the effect of commission salespeople? Really?

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

I did plenty of things wrong. Most of the businesses had 3--10 FTE employees. At one point I had about 15 at one time, in the same industry. A couple of times everyone in the industry took a bath. I had three that were a bust and eventually I just shut them down. Overall, I made money, but in five years I had net loses and three of them took no draw.

This is pretty typical of professional practices and mom & pop retail. Most businesses start on a shoestring, have a high failure rate, and are initially financed by savings, family, and friends; not venture capital or banks. Once they make it and are worth something, financing becomes available and you can float a business plan to lenders that lets you take some bucks out. My average venture had a startup cost of say $25k.

You hired wrong, were underfunded, and failed to take into account that Angel Investors, venture folks, and banks invest/loan for all types of businesses with differing amounts of principal investment. Plus, it gives you an opportunity to see if your idea is worth anything.

 

[The Rabbi]

A raise in minimum wage would affect 100% of the labor force directly.

As an employer, if you made less than your employees you did something wrong or your not coming clean, it's NOT part of being a small business owner.

Never run a small business, I see.
Many times my employee got paid much more than I took. Frequently I took nothing.

I started two companies from inception and sold 20 years later for $50M.

Today I'm an Angel Investor in two IT delivery companies that have hit the $20M revenue mark, and in the next five years will hit the $50M mark.

.

You are an ignorant poseur. Of that I am certain.

 

[oldfart]

You hired wrong, were underfunded, and failed to take into account that Angel Investors, venture folks, and banks invest/loan for all types of businesses with differing amounts of principal investment. Plus, it gives you an opportunity to see if your idea is worth anything.

I hate to break it to you, but 95% of people who want to start a small business do not expect to get rich. They want to work hard, be independent, and make a modest living. It's the assholes who talk about venture capital and how much they sell their company for who are the small minority. It's the disrespect shown to small businesses that employ 50 people or less, but account for most of the hiring, that causes people to think that owners of large businesses are generally a bunch of crooks. Marx didn't make people think that way, people like you are what make them think that way.

From the boasts you put out, I know you don't think of yourself in the same league as barbershops, restaurants, boat dealers, general construction contractors, and such who own their business and hire real people who didn't go to college and don't write code. But that's the world I have chosen to live in, and it was a good choice for me and my family.

How is the Steve Jobs wanna-be thing working out for you?

 

[OohPooPahDoo]

Real Disposable Income is Falling at 2008 Rates | Zero Hedge

The biggest single most important item in the GDP report yesterday was the collapse in disposable income for Americans.



Most investors will focus on the drop in GDP growth for 1Q13 and view it as opening the door for the Fed to continue with QE 3 and QE 4 without any tapering in sight.

After all, the markets have believed that bad economic news is good news for the markets for four years based on the belief that a weak economy will mean more money printing from the Fed.

However, the real issue in the BEA’s report on GDP growth was the collapse in real per capita disposable income which fell at a annualized rate of 9.21%. That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.

That was right after Lehman failed and the entire economy and stock market were melting down. Buckle up, things are getting worse in the US at a truly alarming rate.

Cheers, vacation time .........

View attachment 27289 View attachment 27290View attachment 27291

If you wanted higher wages for working Americans you'd be pro-union.

Funny how the side that cringes every time they hear of union workers or teachers with good pay and benefits would actually complain about wages dropping. Nothing will make you guys happy ever, will it?

 

[The Rabbi]

Real Disposable Income is Falling at 2008 Rates | Zero Hedge

The biggest single most important item in the GDP report yesterday was the collapse in disposable income for Americans.



Most investors will focus on the drop in GDP growth for 1Q13 and view it as opening the door for the Fed to continue with QE 3 and QE 4 without any tapering in sight.

After all, the markets have believed that bad economic news is good news for the markets for four years based on the belief that a weak economy will mean more money printing from the Fed.

However, the real issue in the BEA’s report on GDP growth was the collapse in real per capita disposable income which fell at a annualized rate of 9.21%. That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.

That was right after Lehman failed and the entire economy and stock market were melting down. Buckle up, things are getting worse in the US at a truly alarming rate.

Cheers, vacation time .........

View attachment 27289 View attachment 27290View attachment 27291

If you wanted higher wages for working Americans you'd be pro-union.

Funny how the side that cringes every time they hear of union workers or teachers with good pay and benefits would actually complain about wages dropping. Nothing will make you guys happy ever, will it?

Detroit was the most unionized city in America. How did higher wages work out for them?